We have a 22 year old son on a disability support pension. He has around $80k in the bank and we have been investigating ways to buy a property for him. Probably to rent out for the time being, rather than for him to live in.
Apparently he would qualify a $120k loan on his current income. Obviously $200k isn't enough to buy a property. We could get something in the range of $300 - $350k in our area.
One thought is for us to use his deposit, buy something in our name and negative gear it. We would need to set up our will so that this property would go to him in the case of our demise. There's ample funds in our superfund to cover any remaining debt.
Down the track, if he decides that he would like to take over the property, can we sell it to him for the amount that's still owing? Would this ring bells with the tax man as to why we sold the property for much less than we paid for it?
I like the idea of him jointly owning the property and but I presume that we couldn't negatively gear part of a property. Or can we?
Are there any better ways to do this?
Would appreciate any help or suggestions.
Apparently he would qualify a $120k loan on his current income. Obviously $200k isn't enough to buy a property. We could get something in the range of $300 - $350k in our area.
One thought is for us to use his deposit, buy something in our name and negative gear it. We would need to set up our will so that this property would go to him in the case of our demise. There's ample funds in our superfund to cover any remaining debt.
Down the track, if he decides that he would like to take over the property, can we sell it to him for the amount that's still owing? Would this ring bells with the tax man as to why we sold the property for much less than we paid for it?
I like the idea of him jointly owning the property and but I presume that we couldn't negatively gear part of a property. Or can we?
Are there any better ways to do this?
Would appreciate any help or suggestions.